Florida to receive billions in BP Gulf oil funds

In this April 21, 2010 file image provided by the U.S. Coast Guard, fire boat response crews battle the blazing remnants of the off shore oil rig Deepwater Horizon.
(Associated Press archive)

By KATE SPINNER

Published: Monday, July 16, 2012 at 12:50 p.m.

Last Modified: Monday, July 16, 2012 at 8:07 p.m.

TAMPA - Florida avoided the worst of the BP Deepwater Horizon oil spill two years ago, but could reap billions of dollars from environmental fines levied against the British oil company.

A new federal law requires that 80 percent of the U.S. Clean Water Act penalties that BP pays for the spill go for environmental and economic restoration of the Gulf of Mexico and its surrounding coastline.

With the potential federal fines ranging from $5 billion to $21 billion — and unofficial reports that BP is ready to settle for $15 billion — the amount Florida receives is expected to be substantial.

The money could provide the Sunshine State with a boost to its struggling economy by shoring up tourism in the oil-tarnished Panhandle; supporting commercial fishermen all the way to Cortez in Manatee County; and bolstering the health of oyster reefs, sea grasses, corals, marshes and mangrove swamps as far south at the Florida Keys.

One recent study by the Walton Family Foundation and Mather Economics LLC showed that restoring wetlands alone creates about 30 jobs for every $1 million spent.

“Today is a great day for the Gulf of Mexico,” said Manley Fuller, president of the Florida Wildlife Federation, at a press conference held with U.S. Sen. Bill Nelson, D-Fla., in front of a large fish tank at the Florida Aquarium.

With sharks, a sea turtle and dozens of different fish swimming in the background, Fuller said the BP money will ensure that “the abundance you see behind us not only survives, but thrives into the future.”

The new legislation, called the Restore Act, amends the Clean Water Act, similar to the Oil Pollution Act of 1990, which set up a $500 million oil spill response trust fund after the Exxon-Valdez spill.

Under oil pollution laws, violators must pay a certain amount of money per barrel of oil spilled into public waters. The amount ranges from $1,100 per barrel to $4,300 per barrel, depending on circumstances.

But until the Restore Act was signed by President Barack Obama on July 6, most of the BP fines would have gone to the U.S. Treasury, where the money could have been spent on anything.

Now the 80 percent of the levies must now go for economic and environmental restoration for affected communities and ecosystems.

Of that 80 percent, the law directs that 35 percent be divided evenly between Florida, Alabama, Mississippi, Louisiana and Texas — or 7 percent for each state. If BP settles for $15 billion, that would be $1.05 billion per state.

Another 30 percent will be divided among the same five states, with the amount for each depending on a complicated damage calculation.

Most of the remaining portion would go to Gulf-wide restoration efforts, with a smaller sum spent on research.

The fines are in addition to criminal penalties that BP must pay, and on top of the company's payments to individuals and communities for economic losses during the disaster response and clean-up.

“We're talking about some real money,” said Nelson, who pushed the act in the Senate. “What we wanted was the money not to go where somebody else could get their hands on it, but to go back to the people and the Gulf.”

The fate of the remaining 20 percent in fines not directed toward the Gulf states is unclear.

Nelson said it would go to the oil spill trust fund, but other environmental leaders said it might be used for deficit reduction.

During the spring and early summer of 2010, the BP disaster sent nearly 5 million barrels — about 206 million gallons — of crude oil spewing into the Gulf from a mile deep.

<p><em>TAMPA</em> - Florida avoided the worst of the BP Deepwater Horizon oil spill two years ago, but could reap billions of dollars from environmental fines levied against the British oil company.</p><p>A new federal law requires that 80 percent of the U.S. Clean Water Act penalties that BP pays for the spill go for environmental and economic restoration of the Gulf of Mexico and its surrounding coastline.</p><p>With the potential federal fines ranging from $5 billion to $21 billion — and unofficial reports that BP is ready to settle for $15 billion — the amount Florida receives is expected to be substantial.</p><p>The money could provide the Sunshine State with a boost to its struggling economy by shoring up tourism in the oil-tarnished Panhandle; supporting commercial fishermen all the way to Cortez in Manatee County; and bolstering the health of oyster reefs, sea grasses, corals, marshes and mangrove swamps as far south at the Florida Keys.</p><p>One recent study by the Walton Family Foundation and Mather Economics LLC showed that restoring wetlands alone creates about 30 jobs for every $1 million spent.</p><p>“Today is a great day for the Gulf of Mexico,” said Manley Fuller, president of the Florida Wildlife Federation, at a press conference held with U.S. Sen. Bill Nelson, D-Fla., in front of a large fish tank at the Florida Aquarium.</p><p>With sharks, a sea turtle and dozens of different fish swimming in the background, Fuller said the BP money will ensure that “the abundance you see behind us not only survives, but thrives into the future.”</p><p>The new legislation, called the Restore Act, amends the Clean Water Act, similar to the Oil Pollution Act of 1990, which set up a $500 million oil spill response trust fund after the Exxon-Valdez spill.</p><p>Under oil pollution laws, violators must pay a certain amount of money per barrel of oil spilled into public waters. The amount ranges from $1,100 per barrel to $4,300 per barrel, depending on circumstances.</p><p>But until the Restore Act was signed by President Barack Obama on July 6, most of the BP fines would have gone to the U.S. Treasury, where the money could have been spent on anything.</p><p>Now the 80 percent of the levies must now go for economic and environmental restoration for affected communities and ecosystems.</p><p>Of that 80 percent, the law directs that 35 percent be divided evenly between Florida, Alabama, Mississippi, Louisiana and Texas — or 7 percent for each state. If BP settles for $15 billion, that would be $1.05 billion per state.</p><p>Another 30 percent will be divided among the same five states, with the amount for each depending on a complicated damage calculation.</p><p>Most of the remaining portion would go to Gulf-wide restoration efforts, with a smaller sum spent on research.</p><p>The fines are in addition to criminal penalties that BP must pay, and on top of the company's payments to individuals and communities for economic losses during the disaster response and clean-up.</p><p>“We're talking about some real money,” said Nelson, who pushed the act in the Senate. “What we wanted was the money not to go where somebody else could get their hands on it, but to go back to the people and the Gulf.”</p><p>The fate of the remaining 20 percent in fines not directed toward the Gulf states is unclear.</p><p>Nelson said it would go to the oil spill trust fund, but other environmental leaders said it might be used for deficit reduction.</p><p>During the spring and early summer of 2010, the BP disaster sent nearly 5 million barrels — about 206 million gallons — of crude oil spewing into the Gulf from a mile deep.</p><p>Eleven workers were killed when the Deepwater Horizon rig exploded.</p>